Backtesting is a tool that you (as a trader or investor) can use when exploring new markets and strategies. It can provide some valuable feedback based on data and tell you whether your initial idea was valid.
Regardless of the asset classes you trade, backtesting doesn’t require you risking any of your hard-earned funds either. Using backtesting software in a simulated environment, you can build and optimize a particular approach to a market. Let’s dive in.